COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:1537H.01I Bill No.:HB 536 Subject:Political Subdivisions; Contracts And Contractors Type:Original Date:February 9, 2025Bill Summary:This proposal changes provisions relating to design-build contracts.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue*$0 to Unknown$0 to Unknown$0 to UnknownTotal Estimated Net
Effect on General
Revenue$0 to Unknown$0 to Unknown$0 to Unknown
*Oversight assumes the unknown savings will not reach the $250,000 threshold.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on Other State
Funds $0$0$0
Numbers within parentheses: () indicate costs or losses. L.R. No. 1537H.01I
Bill No. HB 536
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0 to Unknown$0 to Unknown$0 to Unknown L.R. No. 1537H.01I
Bill No. HB 536
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FISCAL ANALYSIS
ASSUMPTION
§§8.690, 67.5050 & 67.5060 – Design-Build Contracts
Officials from the Office of Administration (OA), Kansas City, O’Fallon, Northwest
Missouri State University and the University of Central Missouri each assume the proposal
will have no fiscal impact on their respective organizations. Oversight does not have any
information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for
these agencies.
In response to similar legislation for §§67.5050 & 67.5060 from this year, SCS for SB 10,
officials from McDonald County and Springfield each assumed the proposal will have no fiscal
impact on their respective organizations. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these organizations.
Oversight assumes OA and local political subdivisions would not use the Management-At-Risk
or the Design Build methods of construction unless it would either save money, provide some
other benefit, or be absorbed within current budget appropriations. Therefore, Oversight will
assume the proposal could have a positive fiscal impact to OA and local political subdivisions
from this proposal and will range the fiscal impact from $0 to an unknown amount of savings.
Oversight only reflects the responses received from state agencies and political subdivisions;
however, other cities, counties and universities were requested to respond to this proposed
legislation but did not. A listing of political subdivisions included in the Missouri Legislative
Information System (MOLIS) database is available upon request.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUESavings – on Construction Management
practices §§8.690, 67.5050 & 67.5060$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
GENERAL REVENUE
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown L.R. No. 1537H.01I
Bill No. HB 536
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FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028LOCAL POLITICAL
SUBDIVISIONS
Savings – on Construction Management
practices §§8.690, 67.5050 & 67.5060$0 to Unknown$0 to Unknown$0 to Unknown
ESTIMATED NET EFFECT ON
LOCAL POLITICAL
SUBDIVISIONS
$0 to
Unknown
$0 to
Unknown
$0 to
Unknown
FISCAL IMPACT – Small Business
There could be a direct fiscal impact to small businesses who utilize either of these construction
management practices on projects as a result of this proposal.
FISCAL DESCRIPTION
Currently, political subdivisions are authorized to use the construction manager-at-risk method
for certain construction projects, as defined in statute. Statutory authority for that authorization is
scheduled to expire on September 1, 2026.
This bill repeals the expiration of this section, allowing political subdivisions to continue to use
the construction manager-at-risk method.
Currently, political subdivisions are authorized to use design build contracts for certain
construction projects, as defined in statute. Statutory authority for that authorization is scheduled
to expire on September 1, 2026.
This bill repeals the expiration of this section, allowing political subdivisions to continue to use
design-build contracts
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space. L.R. No. 1537H.01I
Bill No. HB 536
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SOURCES OF INFORMATION
Office of Administration
Kansas City
O’Fallon
Northwest Missouri State University
University of Central Missouri
McDonald County
Springfield
Julie MorffJessica HarrisDirectorAssistant DirectorFebruary 9, 2025February 9, 2025